ROMAN CORPORATION LIMITED
TSX : RMN

ROMAN CORPORATION LIMITED

November 14, 2005 21:00 ET

Roman Corporation Reports Third Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2005) - Roman Corporation Limited (TSX:RMN) reported a loss of $3,186,393 or $0.80 per share on revenue of $27,359,971 for the third quarter of 2005. This compares to a loss of $1,455,938 or $0.36 per share on revenue of $28,115,649 for the third quarter of 2004. For the first nine months of the year, the Company recorded a loss of $5,673,073 or $1.42 per share on revenue of $79,774,852. This compares to a loss of $2,714,280 or $0.96 per share on revenue of $82,692,494 for the comparable period in 2004. "The results for the third quarter and nine month period ending September 30, 2005 reflect the extremely challenging market conditions within the paperboard packaging sector across North America and particularly in Canada" said Helen Roman-Barber, Chairman and Chief Executive Officer. "This is attributable," she added, "to the strengthening of the Canadian dollar, rising energy costs and related fuel surcharges, the decline in average selling price for recycled boxboard and high levels of inventory in the consumer packaged goods chain."

Sales in the third quarter of 2005 were 2% lower than sales in the third quarter of 2004, but were 5.5% higher than sales in the second quarter of 2005. The Company has experienced some volume recovery through the third quarter of 2005 and a general selling price increase for recycled boxboard in the amount of $50 per tonne has been implemented with shipments effective October 17, 2005.



Three months ended September 30, 2005 2004
(unaudited)

Revenue $27,359,971 $28,115,649

Expenses:
Cost of goods sold $24,571,176 $23,253,716
Selling, general and
administrative expenses $4,499,038 $4,426,790
Net (gain) on investments ($85,300) ($13,365)
Interest and bank charges $2,551,473 $2,737,691
Loss before income taxes ($4,176,416) ($2,289,183)
Loss ($3,186,393) ($1,455,938)
Loss per share ($0.80) ($0.36)


Nine months ended September 30, 2005 2004
(unaudited)

Revenue $79,774,852 $82,692,494

Expenses:
Cost of goods sold $67,049,871 $65,784,132
Selling, general and
administrative expenses $13,526,170 $12,627,265
Net (gain)/loss on investments $63,545 ($399,488)
Interest and bank charges $6,951,398 $8,823,334
Loss before income taxes ($7,816,132) ($4,142,749)
Loss ($5,673,073) ($2,714,280)
Loss per share ($1.42) ($0.96)


The Company was in violation of certain of the covenants contained in its Senior Credit Agreement and Senior Subordinated Credit Agreement as at September 30, 2005 for which the lenders have issued a waiver and the credit agreements have been amended as at November 14, 2005 to amend certain financial and other covenants, add new covenants and amend certain terms of the credit agreements. The Company has made commitments to its lenders to rationalize its capital structure. The continuing agreement of the Company's lenders to waive or grant waivers with respect to current or future covenant violations is highly dependent upon the Company's continuing efforts to restructure its balance sheet, raise new capital and return to profitability. The Company is evaluating financing alternatives to allow the Company to be adequately funded to achieve its business objectives through a restructuring of its balance sheet and to meet its commitments to its lenders. No agreements or commitments are currently in effect and while there can be no assurance that such agreements can be reached, the Company remains actively involved in discussions with financial providers.

Roman Corporation's primary business is the manufacture of paperboard packaging for consumer packaged goods. The Company's products are the packaging choice for some of the most recognizable national and private label brand manufacturers in North America. Consumer goods packaged with the Company's products range from food and household goods, such as frozen and dry foods, beverages, powdered laundry detergent, batteries and light bulbs to toys, pet products, and hardware.

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